By Rob Starr, Content Manager, Big4.com
The revenues of the world’s 250 largest retailers topped $4 trillion* in fiscal year 2011 (encompassing companies’ fiscal years ended through June 2012), according to the 2013 Global Powers of Retailing report from Deloitte Touche Tohmatsu Limited (DTTL), in conjunction with STORES Media. This is a 5 percent year-on-year increase in retail revenue despite the global economic downturn.
The report attributes continued growth in emerging markets to the burgeoning middle classes, youthful populations, and sizeable foreign direct investment. These emerging markets accounted for almost half (24) of the 50 fastest-growing companies over the 2006-2011 period. Chinese and Russian retailers are well-represented among the fastest 50, as well as retailers from Africa/Middle East and Latin America.
“The growth in large emerging markets such as China is projected to add at least 70 million new consumers to the global middle class per year, which is an additional 500 million new middle-class consumers by 2020. This new wave of consumption represents a huge opportunity for consumer businesses,” said Vicky Eng, Global Retail Lead, Deloitte LLP in the United States. “A significant investment by a company is required to successfully expand and operate in emerging markets, including gaining a deep understanding of local consumers’ tastes and preferences, forging a strong cultural fit with local partners, and attracting and retaining local talent.”